5 Hopes for the USPS New Year

October 1 marked the New Year—that is, the 2014 fiscal year of the U.S. Postal Service. But it’s the same old (sad) song, delivered by a dysfunctional Congress. Thanks to our elected Senators and Representatives, we not only have to endure not just another year of postponed reforms, but also an exigent rate case on top of a regular Consumer Price Index-capped rate hike slated for January.

October 1 marked the New Year—that is, the 2014 fiscal year of the U.S. Postal Service.

But it’s the same old (sad) song, delivered by a dysfunctional Congress. Thanks to our elected Senators and Representatives, we not only have to endure not just another year of postponed reforms, waiting longer still for a reprieve from mandates of Congress from years past, but also an exigent rate case on top of a regular Consumer Price Index-capped rate hike slated for January.

For Standard Mail, that means:

  • Letter Mailings CPI-capped rate increase of 1.55%
    But now with the Combined CPI and Exigency, that increase jumps to 6.09%
  • Flat Mailings CPI-Capped Impact 1.66%
    But now with the Combined CPI and Exigency, that increase rises to 6.32%

As Charley Howard of Harte-Hanks correctly surmised, the only exigency here is “continued inaction by Congress.”

What are the chances?

  1. Congress will get its act together and pass a new formula for prefunding retiree healthcare costs that are more in line with … say, sanity?
  2. Such a reform bill will pass—and leave in place the most hard-fought, cherished centerpiece of the 2006 postal reform bill—the CPI-index cap?
  3. That USPS current cost-cutting discipline—and network consolidations—will continue as management had planned, with “right sizing” the infrastructure achieving its intelligent end?
  4. That universal delivery remains intact—in six days, or five—take your pick?
  5. That certainty and predictability is restored to the Postal Service’s financial picture—providing the assurances marketers crave?

Let’s put it this way—if the “right” postal reform gets deep-sixed (again) in the coming election year, then will we pass the point of no return, with marketers taking their integrated marketing dollars elsewhere? If postal reform passes, but the most important mechanism of fiscal discipline—CPI caps—are undermined, or worse removed altogether, will we pass that same point?

By this time a year from now, will the crises be solved—or compounded? The clock keeps ticking.

Postal Delivery: Which Will It Be—5 Days or 6 Days?

I just had a great exchange with my letter carrier while at my mailbox today. Of course, I brought up the likelihood of five-day delivery come August, to which she gave a candid response, “Well, we’ve been losing money.” That’s why it’s easy to be indignant when some members of Congress, perhaps predictably, jumped onto the current appropriations bill with mandates for six-day delivery. Yet, one has to ask, where are the means for real relief from some of the costliest demands of the 2006 postal reform law?

I just had a great exchange with my letter carrier (as I sometimes do) while at my mailbox today, and I wonder how many times a day my carrier is interrupted in her work, as I interrupted her, to politely chit-chat. Of course, I brought up the likelihood of five-day delivery come August, to which she gave a candid response, “Well, we’ve been losing money.”

Most Americans—and maybe even some carriers—don’t know the full story—or any story—about how the United States Postal Service endures pre-funding retirement benefit mandates from Congress, as well as other cost-drivers that have nothing to do with the digital age, electronic bill payments and multichannel communication trends. Nor do they know that both The White House and Congress spend these mandated monies on their own programs, even as the federal deficit spirals.

That’s why it’s easy to be indignant when some members of Congress, perhaps predictably, jumped onto the current appropriations bill (a continuing resolution to fund the government beyond March 27) with mandates for six-day delivery. Yet, one has to ask, where are the means for real relief from some of the costliest demands of the 2006 postal reform law? Making the Postal Service stick with Saturday delivery isn’t the action we need Congress to take.

Is it really enough, or correct, to just counter USPS management efforts to cut costs and right-size the network? Why not delve deeper into the ills that Congress and the Administration—both parties involved here—have heaped onto the Postal Service’s bottom line? Why not revisit real postal reform? How many more years must the Postal Service get squeezed, and default on payments, before Congress and the Obama (or next) Administration take seriously its cause, its future, its sustainability?

Late last month, National Public Radio discussed, in a piece regarding postal services around the globe, how these services are coping with lower demand of an increasingly electronic society: http://www.npr.org/templates/story/story.php?storyId=172932914

It’s funny how much of “Socialist” Europe already has privatized its posts (not that citizens or businesses are the better for it). On the other hand, it’s very serious to say our quasi-public U.S. Postal Service still runs the most efficient ship of all, universal delivery at a fair price, despite its tethers to political whims …

… and despite my “stealing” of expensive carrier street time! five-day or six-day delivery is a concern for many mailers—but it’s really not the most important postal operations issue that needs to be addressed.